NEW YORK (Reuters) – Argentine dollar-denominated international bonds were on track to post another week of gains on Friday, with 2029 and 2030 issuances at or near record prices.
Bonds have recovered from the lows that sent bond issuance due in 2030 to 18.125 cents in mid-July 2022, driven by investor bets that President Javier Milei’s government, in power since December, will be able to successfully transform the Argentine economy.
At the JP Morgan index level, Argentine bonds have gained about 60% since Milei was elected on November 19.
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“Despite strong movement in recent sessions and possible volatility surrounding ongoing political negotiations, we believe the newly established levels can be consolidated,” JPMorgan analysts wrote this week.
Milei has made austerity a focus since taking office, helping the country record its first monthly fiscal surplus in more than a decade in January. Investors are pleased, but cash-strapped regional governors and poverty-weary unions threaten a fragile balance.
“There are many policy challenges and execution risks, but there appears to be a path to a political settlement,” JPMorgan said, adding that additional assistance from the International Monetary Fund could help extend the uptrend.
Tags: Argentine dollar bonds hit records rally driven Milei continues
